Key facts
- ARK Invest acquired SpaceX shares valued at approximately $18.3 million.
- The purchases were made across four of ARK Invest's actively-managed ETFs.
- SpaceX shares fell to a new post-IPO low, closing down 5.43% on July 17.
- ARK Invest also sold holdings in Robinhood Markets on the same day.
- Robinhood's stock declined 5.72% on July 17.
Cathie Wood's ARK Invest significantly increased its stake in SpaceX on July 17, acquiring nearly $18.3 million worth of shares as the company's stock hit a new post-IPO low. The investment firm purchased 147,623 SpaceX shares across four of its actively managed exchange-traded funds, with the ARK Innovation ETF (ARKK) making the largest acquisition.
This buying activity occurred as SpaceX shares closed at $123.99, marking a 5.43% decrease for the day and a roughly 35% drop from its IPO price. The decline has been attributed to lagging investor interest and a recent Starship Flight 13 launch cancellation due to engine issues, though Elon Musk stated the engines would be replaced and rescheduled the mission. Market observers offered mixed reactions, with some, like Gary Marcus, suggesting further declines were possible, while others, such as Tesla investor Sawyer Merritt, viewed the selloff as an overreaction.
Concurrently, ARK Invest also reduced its holdings in Robinhood Markets, selling 20,089 shares across two ETFs. Robinhood's stock also experienced a downturn, closing at $99.96, down 5.72% on the same trading day.